Mr. Andrew Cheung reports

01 QUANTUM REPORTS SECOND QUARTER FISCAL 2026 RESULTS AND PROVIDES UPDATE ON BUSINESS DEVELOPMENTS

01 Quantum Inc. has released its results for the second quarter of fiscal 2026, which ended April 30, 2026.

Andrew Cheung, chief executive officer of 01 Quantum, commented: "This quarter underscored the progress we are making in transforming our technology platform into commercial outcomes that demonstrate product-market fit. We recently expanded our partner network with a Canadian leading global IT and business consulting services company as announced yesterday and expectations of more to come, and deepened our involvement with government stakeholders at both the federal and provincial levels, including defence organizations evaluating quantum-safe capabilities. To spearhead our commercialization initiatives, we have established a high-calibre, senior executive team positioned to capture high-value public and private sector opportunities. These initiatives create multiple entry points for adoption and accelerate our path to market in fiscal 2026 and beyond."

"qVAULT, our quantum-safe utility designed specifically for digital asset Q-Day protection is approaching commercial availability. qVAULT was designed to strengthen the value proposition of the $qONE ecosystem as users adopt quantum-resilient storage and transaction capabilities. Industry experts are already calling for postquantum migration to be a priority for every project with exposed public keys in recent months after a recent paper illustrated a significant improvement in the resources required to break the signature encryption scheme protecting bitcoin and ethereum. We expect to derive value from qVAULT as an increasing number of digital assets will likely need to be protected against emerging risks from quantum computing advancements. Looking forward, the necessity for robust Q-Day protection extends far beyond standard digital assets; it is becoming critically vital for stablecoins and the anticipated significant growth of digital bonds. This shifting market creates a major catalyst for the $qONE ecosystem, significantly increasing the long-term utility and value drivers for $qONE whereby it is designed to be a native 'currency' to pay for quantum-safe transactions. We expect asset tokenization, as well as stablecoins to be increasingly relevant end-markets for qVAULT, especially as usage of these instruments grows and stakeholders seek to secure these ecosystems against the Q-Date threat where potential technological advances in quantum computing render current information security systems obsolete.

"Combined with growing interest across all our postquantum cryptography (PQC) and AI security offerings, solid cash management, and an efficient operating structure, we feel well positioned to translate our innovation into commercial success."

Business update

Remote access: The company's PQC-enhanced remote access platform, DoMobile Ver.5, continued to scale through its Japanese partner. Deployment activity increased as the partner expanded onboarding across enterprise and regulated sectors. These deployments represent the first wave of commercial PQC adoption in remote access, a category where quantum-safe requirements are accelerating globally.

$qONE and qVAULT: The $qONE ecosystem advanced meaningfully during the quarter. qVAULT, the company's quantum-safe digital asset utility, progressed to the ambassador stage and is nearing general availability, which is expected later this quarter. qVAULT is designed to provide secure, quantum-resistant storage and management of digital assets using 01 Quantum's PQC technologies.

As qVAULT launches, it is expected to become a core utility within the $qONE ecosystem, increasing token utility as users adopt Q-Day protection for their digital assets, stablecoins and tokenized digital bonds.

Quantum-safe AI commercial pathways broadening: Development of the Quantum AI Wrapper (QAW) progressed with a focus on encrypted inference for high-value small language models (SLMs). QAW combines full homomorphic encryption (FHE) with IronCAP PQC to protect prompts, model parameters and outputs even in compromised environments. United States patent application No. 19/341,748 for the company's QAW technology has been examined by the USPTO and has been allowed for issuance as a patent.

Strategic government and defence expansion: 01 Quantum continued to broaden its presence across government and defence-related channels during the quarter. The company's expanded executive team is executing a co-ordinated strategy to increase public-sector opportunities, strengthen relationships with key stakeholders, and position its PQC and AI security technologies for long-term adoption. At the federal level, the company is advancing discussions related to digital sovereignty and secure AI execution, including potential pilot environments and technical evaluations. These engagements reflect growing interest in technologies that can support next-generation cybersecurity and AI-driven workloads across public-sector operations.

Provincially, the company is progressing multiple opportunities with organizations focused on AI innovation, data-sensitive workflows and secure digital transformation. These initiatives include collaborative technical work, evaluation environments and early-stage commercialization pathways. The company also continues to strengthen its academic partnerships, supporting research, testing and validation of its technologies.

In the defence sector, 01 Quantum is engaged in continuing discussions with several branches and Tier 1 system integrators evaluating quantum-resilient cybersecurity and secure AI capabilities for mission-critical environments. These interactions include exploratory work related to advanced testbeds and long-term modernization initiatives.

Financial results

In addition to cash consideration, the company received 22.5 million $qONE tokens as partial payment for development services. The tokens have been recorded as a digital asset at their fair value on the date received and are retained on the company's balance sheet as the company advances the qVAULT utility to support broader functional use of the $qONE token.

Revenue for the quarter was $668,331 (2025 -- $102,807), the increase driven primarily by development and integration fees along with the introduction of continuing royalties from the release of DoMobile in Japan through the company's Japanese partner and revenue recognized from the receipt of the $qONE token..

Net loss for the quarter was $327,972 (2025 -- $286,783).

Adjusted loss (cash loss) for the quarter was a well-managed $176,939 (2025 -- $205,801). Adjusted loss excludes stock-based compensation and depreciation, which are non-cash expenses, and revenue recognized from the receipt of the $qONE token, which is being held as a long-term digital asset.

Cash operating expenses for the quarter, which exclude stock-based compensation were $552,047 (2025 -- $310,435), reflecting increased R&D (research and development) and commercialization activity.

Cash and equivalents as at April 30 were $2,899,340.

The company believes its current capital resources are sufficient to support continuing operations and commercialization initiatives.

Outlook for fiscal 2026

The company's commercialization priorities for the remainder of 2026 include:

• Expanding DoMobile deployments through its Japanese partner, where customer onboarding and sector-specific integrations are expected to increase as quantum-safe remote access gains traction across regulated and enterprise environments;
• Launching qVAULT to drive increasing $qONE utility across digital assets, stablecoins and digital bonds. qVAULT is designed as a quantum-safe storage and transaction utility for Q-Day protection, positioning $qONE as the native currency for quantum-safe digital asset operations;
• Advancing the Layer 1 Migration Toolkit with blockchain partners evaluating pathways to upgrade existing defi (decentralized finance) ecosystem to quantum-resistant security while maintaining compatibility and minimizing disruption;
• Progressing QAW toward initial commercial availability as interest grows across enterprise, public-sector and defence-related environments seeking encrypted AI execution and secure model-sharing capabilities;
• Continuing to build out PQC technologies across the company's road map to support long-term expansion in cybersecurity, digital asset infrastructure and secure AI workloads.

Mr. Cheung added: "The shift toward quantum-safe infrastructure and secure AI execution is accelerating. With partners now driving deployments and government channels opening new opportunities, we believe 01 Quantum is well positioned to establish itself as a leader in quantum-resilient cybersecurity and AI security."

Conference call reminder -- 10 a.m. EST today

Join 01 Quantum live later today at 10 a.m. EST (Thursday, June 11, 2026) for an update on the company's results, as well as an overview of and the potential for the company's strategic partnerships, along with insights into the company's road map and additional areas of focus.

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Dial-in:  within Canada at 647-374-4685 or 647-558-0588; within the United States at 646-558-8656 or 669-900-9128

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The company's unaudited consolidated financial statements and management's discussion and analysis for the period ended April 30, 2026, are available on SEDAR+.

About 01 Quantum Inc.

01 Quantum, formerly 01 Communique Laboratory Inc., is known for its innovative work in postquantum cryptography (PQC), developing technologies designed to protect digital systems against emerging quantum computing threats. The company's IronCAP and supporting technologies are integrated into its PQC solutions, enabling applications across security-sensitive environments, including digital assets, AI systems, e-mail security and enterprise infrastructure. IronCAP technologies are patent protected in the United States by patents No. 11,271,715 and No. 11,669,833.

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